Korea as a new pillar in Russian market

Andrew Babanin
Russian version: Корея как новый столп в мировой часовой индустрии

While thinking what are the top watch manufacturing countries in the world in our mind comes Switzerland, Japan, Hong Kong (China) and South Korea. In Russia is also quite big market of domestic watches because of their relatively low prices. Also you can see the tension of watch manufacturing generally in Europe, Asia and USA.

In presence Russia is very profitable market for foreign watch manufacturers. Domestic economy improves and stabilizes, earns of inhabitants gradually increase. Customers put more and more requirements to the watch quality and assortment. Cheap Chinese fake watches for two dollars had gone away. There are more and more high quality watches at the market. Many customers are interested in expensive Swiss brand models. On the background of gradual decreasing value of sales all over the world because of financial crisis, in Russia you can distinguish a small growth of watch consumption. So many Swiss and of course Japanese and Korean watch manufacturers are quite interested in the Russian market. Indeed in the wristwatch category the top imports has been from Hong Kong – China, Switzerland, Japan and Korea. Moreover many modern and attractive watch designs make the regional or even international debut in Russia!

Big quantity of residents in multinational Russia makes its market very interesting and allows watch makers to introduce the most bold projects. Manufacturers are always on their toes to come up with more attractive and innovative models for the market requirement. So it’s quite easy to notice the competition among watch manufacturers in all segments of the market.

Korean watches were first introduced as a brand quite recently, in the middle of eighties of the last century. First time they appeared, of course, in countries, where entry barriers were relatively low and they could quite successfully compete with Swiss and Japanese labels. United Arab Emirates market was the entry gate for the Gulf countries. Korean watches first appeared in Russia in the beginning of nineties, when the Soviet Union had ruined and the Russian borders became open for foreign goods. From the beginning the Koreans made accent on medium and upper range with high quality and innovative design. The consistent quality and the richest assortment of innovative design watches made entry path relatively easy into the Russian watch market. Romanson is deservedly considered the first Korean brand presented in Russia. The company being established in the end of eighties has been the leader of Korean watch industry till today. Seeing the success of Romanson, many other brands from Hong Kong and Korea are being introduced in Russian region. But none of them had became so popular or, let us say, “folk” brand.

Several years ago there was presented a bulk of brands from United Arab Emirates. Few brands like Appella and Westar were successful in Russia. They are going into the multicultural Russian market fully using their knowledge, experience and effective sense of market. For such brands the Korean watch manufacturers are the major source area for high quality dials, cases and bracelets.

Given the high level of competition in all segments of Russian market and the high purchasing ability, multiplied on a gradually increased prosperity towards spending among the Russians, makes the future of all segments of the market very promising. Both customers and watch manufacturers may look forward to even more exciting times ahead.

14th Asian Horological Trade & Industry Promotion Conference

Seoul, Korea. Oct. 14-15 2002